May 15, 2018 McGowan budget piles new costs on recovering mining sector · Exploration Incentive Scheme (EIS) – now funded by industry · Mining sector to contribute to Building & Construction Industry Training Fund Levy · Mining sector to pay for government environmental approvals · Future gold tax not ruled out The McGowan Government has continued its attack on Western Australia’s mining sector with cost imposts designed to raise revenue to fund its election commitments, according to Shadow Minister for Mines and Petroleum Bill Marmion. “The mining and exploration industry contributes $5 billion in royalties every year to the State but at a time when the industry is in the formative stages of recovery the McGowan Government is increasing Mining Tenement Rentals (MTRs) by $35 million over the next four years, as well as demanding 0.2 per cent of the total value of construction of resource projects be paid to the Building and Construction Industry Training Fund,” Mr Marmion said. “The McGowan Government says the MRT increase is to fund the highly successful Exploration Incentive Scheme (EIS) which was introduced by the former Liberal Government and funded out of Royalties for Regions. “The Government claims the sector contribution to the Industry Training Fund will raise $25 million over the next four years but fails to recognise the negative impact it could have on the viability of potential projects.” Mr Marmion said the McGowan Government was also introducing a cost recovery model for environmental regulation services delivered by the Department of Water and Environmental Regulation. “This will severely impact projects in the development phase which have yet to generate revenue to pay for government approvals,” Mr Marion said. “WA was ranked ninth in the world by the highly regarded Fraser Institute in terms of policy support for mining investment during the Liberal-National Government’s term but after one year of McGowan Labor Government we have dropped to 17th. “Unfortunately, these new imposts on the sector and the Treasurer’s refusal to rule out another attempt to increase the gold tax means this ranking will likely fall further.” Ends |
